HST for Ontarians

If you hang your hat in Ontario or BC, chances are you’re trying to wrap your head around the HST.  Maybe you’re already starting to pay it on goods and services that can/will be used from July 1 onward.

Both provinces are introducing Harmonized Sales Tax, or HST, to a variety of goods and services on July 1. In Ontario, this means that the HST will total 13%.  Normally, the GST (federal tax) plus the PST (provincial tax) equal 13% now. Doesn’t seem very scandalous does it? The scuttlebutt is that 13% will be applied to a variety of goods and services which formerly weren’t subject to the 8% PST, now simply called “the provincial portion”. Yep, that means we’ll pay 8% more as consumers on a bunch of stuff.

I was under an impression that I’d get a $1,000.00 cheque to help alleviate the impact of the HST. While this is true, it won’t be in one, big,  fat cheque in July as I previously understood. I understand now the $1000.00 will be sent in three payments. They’ll  sent $330 on June 10th, $335 in December 2010 and then another $335 in June 2011, presuming that I file my 2010 tax return.

You can read a bit more detail here. There’s a more comprehensive chart about singles, single parents and families here.

Bit of a drag. I was hoping for the $1000.00 all at once. It was really looking good on my cash flow for July. Now I’ll adjust and put the appropriate amounts in June and December for this year. The announcement of the additional $335 for June 2011 prompts me to start my cash flow chart for 2011 sooner than later, so I can plug that in to the revenue for next year. Yep, it’s ready to start thinking about next year for us budgeting types.

Meanwhile, starting July 1, I’ll start paying 8% more on heat, hydro, car rentals, professional services including a hairdresser/barber, internet services, and some consumer products. Thankfully, the new tax will NOT apply to a few things that I spend a good bit of coin on, like prescription drugs, municipal public transit, cable, phone (cell and land line) and groceries. You can find a list of more HST exempt items here.

You and I will have to be patient to get our $1000.00. Ontario Premier McGuinty tells us this new tax will be good for business, therefore good for the economy and good for consumers. I’m not sure that’s the case, but I do hope so. I’ll also appreciate the three cheques to help cushion the blow to the budget.

Yet another reason to get rid of debt. In case we needed any other reasons! Between the HST and rising interest rates, it’s going to cost more just to live here.


2 responses to this post.

  1. Thanks for blogging about this and providing the links for more information. Up till now I haven’t spent a whole lot of time researching the details of the HST, but now I feel like I have a much better understanding of how it will impact our lives and our budget. On the whole I don’t think we’ll feel it like some other families will. We are fortunate to have a good family income and I have no business complaining when people without jobs or with low paying jobs will be struggling far more than we will be.


  2. Posted by Jonathan Rose on May 11, 2010 at 5:09 pm

    Hi, thanks for laying out the specifics around the transition cheques. In terms of what will be affected come July 1st, here’s a couple other things worth noting:
    83% of a family’s everyday purchases will not change whether it’s bought on June 30th or July 2nd. That includes things most bought by young families: diapers, children’s clothing, children’s footwear, groceries, booster seats and car seats, restaurant meals, child care services, tutoring services, books, over-the-counter medication, crafting supplies and toys
    Here’s a more detailed list that your readers might find helpful:


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

%d bloggers like this: